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Bundesheer Budget: Tricky Decision on Fighter Jets Postponed to Fall
๐Ÿ‡ฆ๐Ÿ‡น Austria /Economy & Trade

Bundesheer Budget: Tricky Decision on Fighter Jets Postponed to Fall

From Die Presse · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Austria's military budget will increase in the coming years, with key procurements secured under the "Aufbauplan 2032+".
  • The financing for replacing the Eurofighter combat jets, which must be retired by 2035, remains undecided and will be negotiated in the fall.
  • The military budget will hover around 1% of GDP, reaching approximately 5.3 billion euros in 2027 and 5.4 billion in 2028, falling short of the goal to reach 2% of GDP by 2032.

Austria's military budget is set for an increase in the coming years, with crucial acquisitions under the "Aufbauplan 2032+" largely secured. However, a significant decision regarding the financing for the replacement of the aging Eurofighter combat jets has been postponed until the fall.

These 15 Eurofighters are mandated for retirement by 2035, necessitating a timely replacement. While the government has committed to increasing military spending to 2% of GDP by 2032, current budget projections indicate this target will remain out of reach. The military budget for 2027 is set at approximately 5.3 billion euros, rising slightly to just over 5.4 billion euros in 2028. These figures represent about 1% of the GDP, a level expected to persist until around 2031.

Despite the budget increases, which Finance Minister Markus Marterbauer stated are essential for protecting Austria and its neutrality in a volatile geopolitical climate, not all planned expenditures are guaranteed. Informed sources suggest that some projects may face cuts or delays. The "Aufbauplan 2032+" does include the purchase of Leonardo M-346FA jets, slated for delivery starting in 2028, and the acquisition of medium-range air defense systems, with a decision on the type expected this year.

The deferred decision on the Eurofighter replacement is a point of contention. Experts estimate the cost of new fighter jets could reach around 10 billion euros. The ร–VP party had pushed for a financial commitment during the current budget negotiations, but Marterbauer resisted, leading to the agreement to address the issue separately in the fall. This postponement leaves a critical capability gap unresolved for the foreseeable future.

Given the extremely difficult and uncertain geopolitical situation, we are enabling the Bundesheer to protect us and our neutrality.

โ€” Markus Marterbauer (SPร–), Finance MinisterExplaining the rationale behind the increased military budget.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.